Rail (East Anglia)

Theresa Villiers Excerpts

Tuesday 3rd July 2012 Westminster Hall

[Lilian Greenwood]

Labour took action in government, and I am happy to say that transport spending in the eastern region increased in real terms during our time in power. In our last year in office, it stood at £1.494 billion, but I do not deny that a new approach is needed. That is why I will set out our proposals for a real devolution programme with transparent and fair regional funding. Unlike the Government’s proposals on devolution, ours include democratic accountability.

The prospectus makes a powerful case for investment in East Anglia’s rail network, but Government cuts have made it less likely that the funding will be found.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

It is simply not true that the Government are slashing spending on our railways. We have embarked on the biggest programme of capacity expansion in the rail network since the Victorian era. The hon. Lady should get her facts right.

[Lilian Greenwood]

I am sorry that the Minister felt the need to spell that out, because she is wrong. She is cutting money from planned rail investment, and there will be an impact when hon. Members seek investment. I look forward to hearing what she has to say on the high-level output specification and what it means for not only East Anglia, but other parts of the country.

The hon. Member for Suffolk Coastal has said that she was reassured that

“it is not on the Government’s Agenda to reduce passenger rail services.”

She will surely hope, therefore, that the Government do not follow the model they adopted when they issued the west coast invitation to tender. The document allowed bidders to reduce daily stops at stations by up to 10%. Any reduction in service would be compounded by the McNulty report’s ticket office closures in the counties represented here today. Colchester Town in Essex, Thetford in Norfolk, and Whittlesford Parkway in Cambridgeshire, to give just a few examples, all face having their staff withdrawn. I am sure that the hon. Lady, having secured the debate, will also put pressure on her Government to ensure that existing services in East Anglia are protected. [Interruption.]

Passengers are already feeling the pinch. Services are overcrowded, and the Government have decided to increase fares by 3% above the retail prices index for the remainder of the Parliament. They have also given train operating companies the freedom to average out the rise, leading to fare rises of up to 11% next January. When personal and family budgets are under great pressure, with some commuters paying as much as £4,000 or £5,000 for their annual travel, the Government should be on the side of East Anglia’s commuters, not vested interests in the rail industry. [Interruption.]

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[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I join other hon. Members in congratulating my hon. Friend the Member for Suffolk Coastal (Dr Coffey) on securing the debate and providing a timely and valuable opportunity to discuss the future of rail services in East Anglia. I take on board the points that many of my hon. Friends made about the unity behind the prospectus that was published yesterday. I am well aware that regional rivalries go back to before the time when Boudiccan hordes burned down Colchester, so it is no mean feat to unite Essex, Suffolk and Norfolk, and the whole of East Anglia.

We fully recognise the importance of good transport links in East Anglia; that is why the vital dualling of the A11 got the go-ahead. My hon. Friend the Member for South West Norfolk (Elizabeth Truss) and others were right to highlight the importance of housing growth and the provision of infrastructure to support it. My hon. Friend the Member for Mid Norfolk (George Freeman), with his characteristic insight, analysed the economic benefits of transport improvements and the potential for expanding life sciences in East Anglia. Like everyone else on the coalition side of the House, I acknowledge the importance of getting the cost of running the railways down, so that we can take the pressure off fares and respond to the kinds of points that have been made by several hon. Members, including my hon. Friend the Member for Witham (Priti Patel).

Punctuality and reliability, which are obviously crucial, were raised by my hon. Friends the Members for Suffolk Coastal, for Witham, for Central Suffolk and North Ipswich (Dr Poulter), and for Ipswich (Ben Gummer). The period of poor service that came about with the start of the franchise was very unfortunate. Abellio has apologised to its customers. I am hopeful that lessons have been learned. Performance has improved significantly since a problematic start. I welcome the collaborative work that is now under way between Abellio and Network Rail, with a view to improving infrastructure performance and ensuring that possessions are managed more efficiently.

The resilience and reliability of the infrastructure remains a concern. I have no doubt that the rail regulator will continue to scrutinise Network Rail’s record and press for improvement. Network Rail is, however, working hard to address the problems, with a major renewal of the overhead line equipment, which has been one of the greatest sources of vulnerability over recent years. The Government are also taking action to crack down on cable theft, which Network Rail highlighted for me as a key problem for the reliability of the network.

Improvements are on the way. Parts of the east of England will benefit from Thameslink. Others, in Essex, will benefit from Crossrail, as we have heard. The work on Beccles loop is happening, thanks partly to support from Suffolk county council. I recognise the aspirations for progress on the western section of East West Rail, and the possibility of a future link between Cambridge and Oxford. Of course, progress is being made on the central section, which we hope will provide momentum for further progress. I agree with my hon. Friend the Member for Central Suffolk and North Ipswich on the crucial importance of upgrading freight connections, particularly between Felixstowe and Nuneaton, to ensure that we relieve pressure on the roads by providing an attractive freight alternative on the rails. The Government are committed to continuing to invest in improving our railway’s capacity to take freight.

The extent to which we can fulfil all the aspirations that have been talked about today, and to which we can achieve goals of the kind set out in the prospectus, will depend on the funds available, and, of course, a careful assessment of competing priorities around the country. I got the message loudly and clearly—

[Mr Peter Bone (in the Chair)]

Order. On the point about loudly and clearly, it would help if the Minister faced forward, so that the microphone could pick up what she is saying.

[Mrs Villiers]

Thank you for that steer, Mr Bone.

Later this month, we will publish our high-level output specification, to cover what we want the rail industry to deliver in the 2014-to-2019 period. Some of the larger headline schemes are likely to be directly mentioned in the statement, but most of the projects needed to deliver the general outputs that we will set in that statement will not be explicitly listed, so the July statement will not have all the answers on exactly how the benefits of rail improvements will be shared around the country. It will be followed by an industry process to decide which upgrades are needed to deliver the specified outputs, overseen by the Office of Rail Regulation. I assure hon. Members that careful consideration will be given to the points made about the Ely North junction and other improvements today. I should mention that this HLOS statement, like the last one, is likely to contain certain general funding pots that are to be made available over the five-year period, which could be used to support various different schemes around the country, including in East Anglia.

The forthcoming long franchise for Greater Anglia will be important in answering the questions we have heard today. We are granting a longer, more flexible franchise, because we believe that that will give the train operator a stronger incentive to invest in the improvements passengers want, including better trains and stations. We expect the next Greater Anglia franchise to start in the summer of 2014, and to last for up to 15 years. Our reforms to franchising put passenger satisfaction and service quality at the heart of the outputs that we require train operators to deliver. We will work closely with bidders and Network Rail to see how we can maximise the opportunity to integrate decision making more effectively between track and train management—that is another aspiration in the prospectus—and we will also require the next franchisee to introduce ITSO smart ticketing across the franchise.

[Ben Gummer]

Will the Minister reflect on a comment made by my hon. Friend the Member for South Suffolk (Mr Yeo)—that in essence rail travel has not really changed for the past 50 years? The long franchise gives a tenderer a fantastic opportunity to have a rethink about passengers and how the railway experience works, and to do some innovative things. That can be managed only in the 15-year context that the Government are setting.

[Mrs Villiers]

I agree that a long franchise can give many more opportunities for a train operator to innovate, and for us to draw private sector investment into the railways.

We will launch a public consultation on the next Greater Anglia franchise later this year. A detailed business case will be developed, and, drawing on the results of the consultation, we are likely to appraise a range of improvement options. As to what goes into the franchise, I emphasise that we have no plans to remove daytime passenger services from the Felixstowe branch line, which was a matter of importance to my hon. Friend the Member for Suffolk Coastal. Although Hutchison Ports has proposed the change, it has an obligation under section 106 of the Town and Country Planning Act 1990 to fund the required infrastructure upgrades.

We have heard many other aspirations: there are the half-hourly services called for by my hon. Friend the Member for South West Norfolk, and the specific service changes called for by my hon. Friend the Member for Colchester (Sir Bob Russell). Decisions on those will be made only after the consultation has taken place, but I shall ensure that this debate is fed into the process.

[Lilian Greenwood]

Will the Minister give way?

[Mrs Villiers]

I am afraid I do not have time; I have only a couple of minutes left.

As for aspirations such as “Norwich in 90”—a campaign for that has been led by my hon. Friend the Member for Norwich North (Miss Smith)—it is too early to say what the franchise will specify for the train service between London and Norwich. However, in making such decisions we will need to take into account the interests of all the communities on the line, and those who live in intermediate destinations such as Chelmsford and Colchester. Whatever train service we adopt, we shall encourage bidders to put together affordable proposals for improved journey times and a better customer experience.

We did some work on options for Norwich to London before letting the short franchise, and that suggested that spending about £10 million to £15 million on new locomotives and refurbishing existing passenger vehicles would make it possible to save about seven minutes on most trains, and that could be funded in a 15-year franchise from additional revenue. However, that is just one option. We hope that franchise bidders will devise alternative plans that either cost less or produce greater benefits for passengers.

One factor, of course, that bidders will have to take into account is the requirement to make modifications to rolling stock by 2020, to provide proper access for people with reduced mobility. In response to all hon. Members who talked about the state of the rolling stock—some of it is fairly elderly—let me say that there will be changes over the next few years because of the deadline. The decision on whether that will involve targeted improvements, full refurbishment, new rolling stock or a combination of all three lies in the future, but change will have to be made. In the meantime, Abellio is pressing ahead with a deep clean of rolling stock.

In conclusion—

[Mr Peter Bone (in the Chair)]

Order.

Oral Answers to Questions

Theresa Villiers Excerpts

Thursday 28th June 2012 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

12. What steps her Department has taken to publicise the consultation on the combined Thameslink, Southern and Great Northern franchise.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

The Thameslink consultation was published on 24 May 2012 on the Department’s website. On the same day, I wrote to the relevant MPs and a press notice was issued. On 13 June, Department for Transport officials wrote to MPs and local councils, further publicising the consultation document and details of the upcoming consultation events.

[Tom Brake]

I thank the Minister for her response. May I encourage her, the bidders, Network Rail, London TravelWatch and Passenger Focus to redouble their efforts to raise awareness of the franchise renewal process and, in particular, the implications for Sutton residents, who may find that the through-trains from which they have benefited for many years stop short of Blackfriars, cutting their access to north London and Crossrail?

[Mrs Villiers]

My right hon. Friend will appreciate that extensive advertising budgets are a thing of the past in the age of austerity, but we will do our very best to make sure that people are aware of the consultation. We are aware of his concerns about the Wimbledon loop; my hon. Friend the Member for Wimbledon (Stephen Hammond) barely gives me a moment’s rest on the issue. Network Rail has concerns about operational issues at Blackfriars, but those are not impossible to surmount. No final decisions have been made. We will consider all the representations on the Wimbledon loop and on all relevant matters in response to the consultation.

[Heidi Alexander (Lewisham East) (Lab)]

Page 28 of the Minister’s consultation document states that future Thameslink services may serve Sevenoaks as well as Dartford and Orpington. Will the rail Minister confirm that, if those services go ahead, they will include a stop at Lewisham, and will be in addition to, and not a replacement for, existing services that run from that station?

[Mrs Villiers]

As I have said, no final decisions have been made on what goes into the ultimate franchise; that is what the consultation is all about. I will make sure that the hon. Lady’s representations are properly considered when the consultation closes.

[Joseph Johnson (Orpington) (Con)]

Now that the consultation on rail decentralisation is drawing to a close, will the Minister or the Secretary of State devolve responsibility for south-eastern suburban rail services to city hall as a matter of urgency, so that it can drive up standards on the south-eastern suburban networks in exactly the same way as it did with London Overground?

[Mrs Villiers]

This is an important issue. We are interested in ways of devolving more decision making about our railways, so that it is closer to the local communities served, but we have to make sure that we take into account the interests of all users of relevant rail services, whether they are within or outside the London boundary. We will make an announcement in due course on the results of our consultation on the decentralisation of rail decisions.

[Mr Philip Hollobone (Kettering) (Con)]

13. What consideration she is giving to the reintroduction of double-decker trains on the rail network.

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

A report prepared by Network Rail in 2007 concluded that the introduction of double-decker trains on the current UK rail network would require extensive modification to structures and stations and was not economically viable.

Although such trains operate in a number of European countries, the larger loading gauge used in continental Europe allows the use of taller, wider trains than is possible in the UK.

[Mr Hollobone]

Other nations seem to make a success of having double-decker trains, and we used to have them on some suburban services in this country. I urge my right hon. Friend the Minister to ask Network Rail to think again, because lots of commuters on congested trains would want us to replicate the success of double-decker buses by having double-decker trains.

[Mrs Villiers]

I welcome my hon. Friend’s interest in this issue, and I have looked at it. The reality, however, is that double-decker trains that were run in the past by British Rail were claustrophobic, it took a long time for passengers to get on and off, and they deployed the sort of slam-door stock that we have tried to phase out. The shape of the UK rail network, the size of the bridges, the distance between rail tracks and the distance between the tracks and the platform mean that we cannot run the large double-decker trains that work in Europe. I am afraid that there are much more cost-effective ways to expand capacity, with longer trains and more frequent services, which is what the Government are doing.

[Mr Peter Bone (Wellingborough) (Con)]

14. What her policy is on the issuing of renewal notices for driving licences.

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[Andrew Gwynne (Denton and Reddish) (Lab)]

T9. Following last week’s publication of the east coast franchise, does the Minister think passengers on the east coast should expect an eye-watering 8% above inflation fare increase, which my constituents travelling on the west coast main line will face in years ahead?

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

This Government are determined to get the cost of running the railways down. That is the way we deal with the concerns that passengers have about fares. If the Opposition think concerns about fares started in May 2010, they are living on another planet. We need reform to get the costs down so that we can respond to passengers, and it is time Labour started producing its own reform plans if it insists on rejecting ours.

[Andrea Leadsom (South Northamptonshire) (Con)]

T4. My right hon. Friend is aware that I have had constituents in tears in my advice surgeries who are blighted by the HS2 project and trapped in their homes, unable to sell them. Can she reassure my constituents that she is determined to make sure that no private home owner has to pay with the value of their home for the project? What update can she give us on the consultation to get a decent, fair compensation scheme in place?

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[Tom Brake (Carshalton and Wallington) (LD)]

T7. Helicopter flights cause significant noise disturbance for people living under flight paths and they also benefit from reduced fuel taxes. Will the Minister look at schemes such as those adopted in Paris and Los Angeles to tackle helicopter noise and also look at the unfair tax advantage that helicopter operators have?

[Mrs Villiers]

My right hon. Friend will appreciate that fuel duty is a matter for the Chancellor. We do appreciate the irritation that helicopter noise can cause—anyone who works in this building gets irritated by them buzzing overhead so often—and will consider it as part of our consultation on a sustainable framework for UK aviation.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Like many Members, I eagerly await publication of the high-level output specification and the statement of funds next month. As matters stand, Wales would see electrification only of our rail network to Cardiff, compared with electrification of 40% of UK railways and the electrification of the Glasgow to London route in 1974. I invite the Department to make up for this historical injustice by including electrification of the valleys network, the north Wales coast line and the main line to Swansea?

Lineside Vegetation (Network Rail Policy)

Theresa Villiers Excerpts

Wednesday 27th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

It is unusual for a half-hour Westminster Hall debate to get trailed on the “Today” programme, but the media interest does not surprise me because this is an issue of real importance for our railways and our environment. Therefore I congratulate the hon. Member for Islington North (Jeremy Corbyn) on securing this debate. He asked me to pay tribute to the residents and the organisations, such as the Royal Society for the Protection of Birds, that have fought campaigns on this issue. I am happy to do so. It is very important that we get this issue right.

I must start by acknowledging that Network Rail, as a private sector company, is not owned by the Government and therefore Ministers have no power to instruct or direct it. Consequently, although I am happy to respond to the points that have been made in this debate, I should emphasise that tree and vegetation management policy is an operational matter for Network Rail, over which we—as Ministers—do not have any power. Nevertheless, I fully appreciate how important this issue is and the concern that communities feel about Network Rail’s treatment of lineside vegetation.

I have raised this issue on a number of occasions with Network Rail, including with those at the very top of the company; I have raised it with Network Rail’s chief executive, Sir David Higgins, and its director of operations, Robin Gisby. I have raised the specific case of Grange Park; I fully acknowledge the concerns of my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) in that regard. The pictures on the internet of Grange Park are more like the pictures that one would associate with rain forests being devastated by illegal logging than pictures of a leafy suburb. I therefore fully understand the concerns of local residents. In response to the points made by all hon. Members in Westminster Hall today, I am happy to raise this matter again with Network Rail and I will keep up the pressure in relation to it, as I do on a regular basis. I should also point out that some of my constituents have had similar concerns about lineside tree clearance by London Underground. That is a different organisation, but the concerns of the people affected are similar to those of the people affected by Network Rail.

To be honest, I always face a dilemma in this regard, since I care very much about both the provision of safe, reliable and affordable railways, and trees and the conservation of the natural environment. Of course, that is a dilemma that Network Rail faces on a daily basis. I fully agree with everything that has been said today about how important it is that Network Rail exercises care and good judgment when balancing those competing concerns. Efficiency and cost are a consideration, but environmental concerns also have to be taken seriously too. It is also very important that Network Rail engages effectively with the communities and local authorities that are affected by vegetation management, and of course it is essential that it complies with the relevant regulations relating to conservation and wildlife habitats.

Regarding the specific points that were made about the works adjacent to lines in north Islington, near the Arsenal stadium and the Gillespie park nature reserve, I am concerned to hear that the hon. Member for Islington North felt that Network Rail’s actions were so disproportionate and destructive in that area. Department for Transport officials have raised this case with Network Rail. As we have heard, in response to the concerns expressed by residents, Network Rail’s route director, Mr Phil Verster, suspended vegetation clearance in the area. I gather that he has asked a senior member of his team to contact Islington council to discuss what has happened and what went wrong. The aim is to agree a mutually acceptable method for sharing Network Rail’s work plans in the future.

As regards work during the bird nesting season, I can confirm that the company is bound by the provisions of the Wildlife and Countryside Act 1981, as amended. Network Rail must ensure that it does not contravene the legislation put in place to protect birds while they are nesting. It should be noted that the legislation allows work to be undertaken where needed for safety reasons.

Turning to the more general issues raised today, Network Rail is tasked with managing over 30,000 hectares of lineside vegetation along 20,000 miles of track. That makes the railway a major natural resource, which needs to be managed at all times of the year to keep it safe. Trees growing within the railway corridor between the railway boundary fences are the responsibility of Network Rail. I am afraid that there is no escaping the fact that trees next to the railway, especially if they are relatively tall, can be a potential risk to train operations and public safety. If they fall over the track or into the overhead wires and cables on electrified railway lines, it can lead to severe train disruption, with major delays and service cancellations. There is also the risk that falling trees could cause accidents.

Factors, such as the steepness of cutting slopes, soil conditions and the nature of the vegetation, can all be relevant to the degree of risk at particular locations. In certain circumstances, trees and bushes need to be cut back in certain areas, because low branches and foliage can impair train drivers’ views of signals. For safety reasons, track workers need to be able to see and be seen by trains, to be able to move to a safe place when a train approaches.

Reliability issues are not confined to instances of falling trees, of course. Delays caused by leaves on the line lead to understandable annoyance and frustration for the commuters and passengers affected, not to mention the economic damage of transport delays. Leaf fall can have a significant effect on train performance and is a significant cause of delay in the autumn, generating public pressure for preventive action. The rail regulator highlighted the contribution of vegetation management to the industry’s successful management of train delays last autumn.

In developing its vegetation management policy, Network Rail tells me that it has worked with organisations such as the RSPB, English Nature and Scottish Natural Heritage. Its priority is to operate a safe and reliable railway, and tree clearance must be a part of that. It has a duty to provide, as far as is reasonably practical, a railway free from danger and obstruction from falling trees.

Recognising public concern on the issue, I have emphasised to Network Rail how important it is that it strikes the right balance between providing a safe, reliable and affordable network and addressing local community and environmental concerns. Although the majority of work is carried out responsibly, the company acknowledged again today that in some instances it has fallen short of the standards it sets itself. It accepts that there are lessons to be learned.

In particular, the Government urge Network Rail to engage proactively and effectively with local residents, local authorities and MPs in advance of carrying out works. It has recently revised its consultation process—no doubt seeking to learn lessons from the experiences that hon. Members mentioned—to enable key stakeholders to be informed of intended maintenance operations in good time.

[Jeremy Corbyn]

I am pleased with the Minister’s response and I am grateful that she will raise our issues with Network Rail. We had exactly those undertakings from it less than a year ago in Islington, and we assumed that it was acting in good faith and would mend its ways in future, because it did similar things on the North London line. Will she tell it in clear terms to please be straight with communities and tell them what is going on? That way, they will understand what is happening, without the kind of double dealing that we had before.

[Mrs Villiers]

The hon. Gentleman makes an important point. It has been raised with Network Rail on various occasions over a period of years. I was trying to remember the first time that I raised it—it was certainly over a year ago. It is important that Network Rail focuses and that we see real change.

There is progress. Network Rail has advised that the number of complaints about vegetation management has fallen. The hon. Gentleman thought that it did not collect that information; I think that it does, but I will check. I was given to understand that it did. Requests to cut back overgrown trees and vegetation now exceed complaints about vegetation management.

However, there are undoubtedly remaining instances in which Network Rail has failed to provide anything like comprehensive advance notice of the nature and timing of its intended work programmes. Network Rail acknowledges the shortcomings that have occurred. For example, it accepts the point made by the hon. Member for Brighton, Pavilion (Caroline Lucas) that when it does communicate with residents, it sometimes fails to convey the scale of the works that will be undertaken. It is reviewing its communications strategy and working with the Tree Council to improve its lineside vegetation management, and with a view to developing more sustainable solutions to the challenges that it faces in reconciling environmental concerns with keeping the railways running safely. Network Rail has acknowledged that it needs to do better, and I will be urging it to do so.

As the hon. Gentleman highlighted, there are important ecological issues to be considered. Network Rail needs to take care to avoid unnecessary tree felling. I recognise fully the concern that people feel when they see trees being cut down next to railway tracks. Network Rail’s first duty is to ensure the safe running of the railway, but it must also have regard to the environmental, social and quality-of-life importance of the conservation of trees and wildlife corridors. This debate will provide a timely reminder of the importance of engaging with MPs, local communities affected by vegetation management and local authorities. I will ensure that all the points made in this debate are conveyed to Network Rail at the earliest possible opportunity. I have enjoyed the chance to debate an important issue with hon. Members.

Question put and agreed to.

Rail-Air Connectivity (South-East)

Theresa Villiers Excerpts

Tuesday 26th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Crawley (Henry Smith) on securing a debate on such an important and interesting topic. He is a great advocate for his constituents, and I welcome his expertise in and understanding of aviation issues, which I am sure are of great importance to many of his constituents who work at Gatwick airport.

I fully appreciate all the points that my hon. Friend made about the importance of high-quality rail services to airports, and particularly to Gatwick, which is one of our biggest and most successful airports. I echo his praise of and congratulations to Gatwick on its investment programme, and I welcome the new services that it is attracting, including Air China’s new service from Gatwick to Beijing. Gatwick well deserved the praise that it received from the Prime Minister, to which my hon. Friend referred.

It is entirely correct to say that the debate about aviation connectivity in this country is not just about Heathrow. Heathrow is an extremely important airport, but we should not forget that London’s five successful airports together make us one of the best connected countries in the world, and Gatwick plays a very important role in that system.

High-quality surface access to our key airports is important for air passengers and for our international economic competitiveness, as my hon. Friend rightly highlighted. In addition, improving rail services to airports can provide important assistance in addressing local road congestion problems and, in certain places, in dealing with air quality problems. As he said, one of the Government’s strategic priorities for the nation’s rail network is improving rail links to major ports and airports.

A significant programme of rail infrastructure improvements is under way, and a number of the projects will benefit airports. If time permits, I shall deal with those later, but first it would be best for me to address some my hon. Friend’s points that were specific to Gatwick.

We have recently started consulting on the new combined Southern, Thameslink and Great Northern franchise. All the responses to that consultation will be shared with the five shortlisted bidders that will compete to become the next operator. The consultation is an important part of the decision-making process on what goes into the new franchise. This debate is therefore very timely, and I encourage my hon. Friend and his constituents to take part in the consultation.

The task that the bidders for the new franchise face in balancing the competing priorities of those who use the Brighton main line, which serves Gatwick, will not be easy—there is no getting away from that fact. Along with much of the nation’s rail network, the line is a tribute to the engineering excellence of our Victorian forebears. Driving tunnels through the downs and building a nine-track viaduct over the River Thames are the sort of engineering projects that we take for granted today, but they were a massive challenge when they were built more than 150 years ago, largely using only manual labour and sheer hard graft.

Brilliant as those Victorian engineers were, however, they bequeathed us a railway that had only 19 platforms at Victoria, and only five tracks south of East Croydon. Since Victorian times, commuting demand has increased dramatically. In a typical weekday morning, the Gatwick Express carries more than 2,000 passengers from Gatwick airport into London, but there are more than 35,000 Brighton mainline commuters, and approximately the same number again commuting into London on Southern’s services from the inner suburbs. Expanding our inherited railway network is neither low-cost nor easy, especially where it runs through our crowded cities, so we will expect the bidders to think hard about how they can make best use of the track capacity available to them in such a way that they can continue to provide a high-quality service to those travelling to and from Gatwick, without compromising their ability to meet the needs of the thousands of commuters who also use the line every year.

Against that background, there is certainly some pressure for more trains to call at Clapham Junction, which is one of the busiest stations on the route and arguably one of the busiest in the world. My hon. Friend will appreciate, however, that although that proposal was included by Network Rail in its south-east route utilisation strategy, that is not binding on the Government. No final decision has been made on it. When we make our decisions on the new franchise, we shall carefully weigh the needs of airport passengers and commuters, as well as taking into account wider strategic economic considerations of the sort to which my hon. Friend referred. This debate is useful for feeding into that decision-making process.

My hon. Friend has concerns about rolling stock. The Government are keen for such decisions to be made, when possible, by the people who run the railways rather than Whitehall. However, I agree that when making choices about rolling stock and its internal layout, the current and future franchisees will need to balance carefully the different needs and wants of railway users.

My hon. Friend the Member for Crawley also referred to decisions about on-train ticketing and the installation of ticket gates at Gatwick. I am aware of the concerns of the airport operator and I have held discussions with Gatwick on several occasions. However, the installation of gates is one of most effective ways to ensure that passengers pay the fares that are due. Protecting that revenue is an important element of delivering a more financially sustainable railway. I note that efforts were made to try to respond to the airport’s concerns, with a choice of wider gates to facilitate passengers with larger bags. I hope that that provides some mitigation to the concerns that my hon. Friend and the airport operator expressed.

I want to discuss the wider programme of activity that is under way to improve rail-to-air links in the south-east and elsewhere. A fleet of brand new trains built by Bombardier in Derby is now in use on the Stansted Express to improve the experience for passengers going to that airport. Network Rail, with the assistance and support of Gatwick Airport Ltd, is investing £53 million in upgrading the station, tracks and signalling at the airport, which includes new platforms and escalators, and a refurbished concourse. That will greatly improve the attractiveness of rail services to and from Gatwick, and I was delighted when the airport and Network Rail put together the funding to make it possible.

Through the regional growth fund, we have awarded £19.5 million to Luton borough council for junction enhancements that will improve access from the M1 to Luton. The RGF has also awarded £40 million to Kent county council for its Expansion East Kent programme, which includes rail improvements affecting journey times between Ashford and Ramsgate that could support the further development of Manston airport as a passenger airport. In the north of England, Manchester airport is getting linked up to Metrolink for the first time, and funding has been secured for a new airport link road connecting the M56 and the A6. Looking ahead, Manchester airport is also set to benefit from our programme of rail electrification in the north of England and from the work on elements of the northern hub that we are committed to delivering.

As my hon. Friend the Member for Crawley rightly pointed out, the Thameslink programme, which took some years to get started under the previous Government—they started out calling it Thameslink 2000, but for some reason dropped that title as delivery got later and later—is very much under way. It is a £6 billion programme that will benefit Gatwick and Luton airports through the operation of a brand new fleet of high-capacity trains running at greatly increased frequency. The trains serving the two airports will be able to stop at London Bridge at peak times, which is not possible at the moment. The Thameslink programme also means that, for the first time, Gatwick will get new direct services to destinations north of London, such as Cambridge, Stevenage and Welwyn.

Crossrail is finally under way, with tunnelling under London commencing at the beginning of May. Once it is completed, we expect Crossrail to provide new services linking Heathrow directly with the west end, the City of London and Canary Wharf. In the longer term, Heathrow will also benefit from the Piccadilly line upgrade, and High Speed 2 will connect to Birmingham airport and provide radically improved access to Heathrow from destinations in the midlands and the north of England. A great deal of work is under way to improve our links between rail and air in the south-east and elsewhere in the country. We shall be giving further thought to whether more can be done as part of our HLOS—high-level output specification—programme for the 2014-to-2019 railway control period.

Let me respond to the hon. Friend’s comments in the context of the overall debate about aviation. The coalition has been clear that it wants a successful and sustainable aviation sector that supports economic growth and addresses aviation’s environmental impacts. Our forthcoming consultation on a sustainable framework for UK aviation will be a further opportunity to consider surface access to airports and the kind of issues that my hon. Friend shared with the Chamber. For example, in response to the scoping document on aviation with which we began the policy development process last year, a number of people advocated the potential of new fast rail links between Heathrow and Gatwick as a way to deal with connectivity. Such ideas will be considered alongside the many other responses that I am sure we will receive in our consultation, in which I hope that hon. Members will participate.

The Government will continue to work with airport operators, the rail industry, local authorities, local enterprise partnerships and MPs on ideas to improve rail access to our key airports in the years to come. All the matters mentioned by my hon. Friend will be carefully taken into account when decisions are made on new franchises for the railways—we are about to embark on the biggest programme of refranchising since privatisation—and we will ensure that we consider the importance of good surface access to our key airports.

[Zac Goldsmith]

Will the Minister reconfirm that it is her view, and that of the Government, that the Government’s first priority is to find ways of making better use of existing capacity? Will she confirm that any thoughts of expansion in the south-east take a very clear second place, and that people will not be subjected to the horror of expansion unless it is an absolute last resort?

[Mrs Villiers]

I agree that whatever decisions are taken about long-term capacity needs in the south-east, it is essential that we do everything that we can right now to make our airports better and to ensure that we make the best use of existing capacity. Two separate things need to be done: to work out how we improve our airports today—we have initiatives on that important aspect under way, such as the operational freedoms trial at Heathrow and reforming how security is delivered—and, at the same time, to give serious, evidence-based consideration to what our future capacity needs might be.

On rail-to-air connectivity, we must be mindful of affordability constraints and value for money. When appropriate, we continue to look to the airports that will benefit from transport improvements to make a fair contribution to their funding. When there are decisions on how limited capacity is allocated between competing priorities, we will need to consider carefully the needs of all railway users—those who are travelling to the airport and those who are not, including commuters and freight operators. We need a successful and sustainable aviation sector that is supported by a railway that delivers reliable, high-quality services for all its users. That is what the Government are striving to achieve, and I am sure that our discussion today will provide useful input into forthcoming decisions on aviation and rail matters.

Walsall-Rugeley Line (Electrification)

Theresa Villiers Excerpts

Thursday 14th June 2012 Commons Chamber

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Cannock Chase (Mr Burley) on securing this debate on such an important issue. It is very timely because decisions on the Government’s high-level output specification are imminent. I have been impressed by the determination of the coalition of different organisations campaigning for full electrification of the Chase line, and I pay tribute to the work of my hon. Friend, who has this evening put the case for that improvement to the House with passion, clarity and detail. I also note the support of my hon. Friend the Member for Lichfield (Michael Fabricant), who is in his place, and the work done by many others, such as the Cannock Chase rail promotion group. Like my hon. Friend the Member for Cannock Chase, I think it is right to single out for praise John Morgan of Cannock Chase district council. As we have heard from my hon. Friend, Mr Morgan’s knowledge of the Chase line is unsurpassed. I am told that he has shown huge dedication over many years in seeking the upgrade he wants to see.

Subject to affordability, the Government support the progressive electrification of the rail network as a way of reducing the cost of running the railways, improving services for passengers and reducing carbon emissions from transport. Electric trains are more reliable, quieter and more comfortable than their diesel equivalents. They are also better for the environment and cheaper to operate. The Government believe it is essential that the cost of running the railways should come down. In March we published plans for achieving major efficiency savings in our Command Paper. We believe that further electrification can assist us in delivering our goal of a more efficient rail network. That is one reason why we are going ahead with significant electrification programmes in the north-west and on the Great Western line.

We accept that there is a positive business case for proposals to extend electrification on the Chase line. I also note the strong local support and the long-running nature of the campaign, as well as the regional support that has been outlined by my hon. Friend the Member for Cannock Chase. I agree with him that considerable benefits could be delivered if it were possible to fund electrification of the line. That would allow more energy-efficient electric services to operate and would remove the existing inefficient and resource-intensive mix of diesel and electric services between Walsall and Birmingham. That could reduce the cost of running the service, which is always an important factor. An added advantage would be the release of the diesel rolling stock used between Birmingham and Rugeley Trent Valley for use elsewhere on the network. Electrifying the Chase line could also provide wider economic benefits, as my hon. Friend rightly identified—for example, by broadening access to labour and goods markets, and by boosting productivity and job creation in the area.

A key factor in considering the case for the further electrification that my hon. Friend wants is the fact that the Chase line is an entry point for trains to the nation’s second city. In recent years the line has become an increasingly important commuter service in and out of Birmingham. The electrification between Walsall and Rugeley could therefore be a way to strengthen peak capacity into Birmingham. Currently, as we have heard, the only electrified route from the west coast main line to Birmingham from the north is the Wolverhampton line. Electrification of the Chase line could offer a second electric route via Walsall from those destinations in the north.

That provides an opportunity for the development of services through Birmingham, Walsall, Stoke-on-Trent, Crewe, Liverpool and elsewhere in the north. It would deliver an electric diversionary route from the west midlands to the north for passenger services from Birmingham New Street and for freight services, relieving the line through Wolverhampton. As well as improving local and regional services, electrification could have a strategic national value.

The benefits of electrification could be considerable and I am clear that this project is a serious contender for funding. The Government are considering how much funding will be available for rail investment in the five-year CP5 period up to 2019 and how it should be allocated between competing priorities. We will announce our decisions on the HLOS 2—high-level output specification 2—statement by the end of July. The case for electrification of the Chase line will be considered as part of that process. I shall ensure that the deliberations and points made in this debate are fed into that process.

The project has been chosen by Centro and the west midlands regional rail forum as their No. 1 electrification priority for the west midlands, and it is supported by the business community and the local enterprise partnership. That local support is something that we shall take into account in our forthcoming decisions on what can go into the next HLOS. As we have heard, reference is made to the project in Network Rail’s initial industry plan, which sets out the options for funding in CP5. I note my hon. Friend’s concerns about the approach to the scheme by Network Rail in the industry plan but, like him, I am pleased that additional work has been undertaken since the plan’s publication further to develop the business case and respond to comments from stakeholders in the west midlands and achieve a clearer understanding of the underlying evidence and facts on what electrification would mean and what it would cost.

[Mr Winnick]

The Minister mentioned stakeholders. I am sure she will bear in mind the point that I made earlier that this has the support of all the Members of Parliament, and there is absolutely no political controversy whatsoever.

--- Later in debate ---

[Mrs Villiers]

I welcome the hon. Gentleman’s restatement and, yes, I am very much aware of that.

We recognise that there is a business case for a number of the schemes identified in the industry plan that are supported by Centro, including greater peak capacity into Birmingham and extra capacity between Birmingham and Tamworth and in the Worcester area. Whether we can give the go-ahead to Chase line electrification and Centro’s other aspirations depends on what is affordable within available budgets. We also have to weigh up competing priorities elsewhere on the rail network. Decisions on HLOS 2 have not yet been taken, but this debate will provide very useful input into the Government’s thinking on this important matter. It is worth remembering that Chase line passengers are in line to receive improved services with a £5.4 million package of improvements announced by Network Rail in 2011 to increase line speed on the Chase line from 45 mph to 75 mph, reducing journey times for passengers travelling from all stations on the line.

We fully understand that the aspiration is to go further, and we recognise the strength of support for electrification, which is something that we will consider with great seriousness in the weeks between this debate and the announcement that we shall make in the summer on which projects can receive funding in the CP5 control period between 2014 and 2019.

Question put and agreed to.

Railways (Kettering)

Theresa Villiers Excerpts

Wednesday 13th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate my hon. Friend the Member for Kettering (Mr Hollobone) on securing the debate, and on his very detailed and well-informed analysis. It is also good to see my hon. Friend the Member for Loughborough (Nicky Morgan) in her place. Both my hon. Friends have played a leading role in the campaign for the electrification of the midland main line.

I understand the importance of the issue not only to my hon. Friends’ constituents, but to many communities in the east midlands and south Yorkshire that are served by the midland main line. I am also aware of the wide-ranging coalition of MPs, local authorities, businesses and other stakeholders, many of whom were mentioned by my hon. Friend the Member for Kettering, who are all campaigning for improvements to the line and, in particular, electrification. The Government’s response to the campaign will depend on what is affordable within budgets that are constrained by the pressing need to deal with the deficit we inherited from Labour. Despite the deficit, we have already embarked on a major programme of rail improvement that is bigger in scale than anything attempted for 100 years. Improving our transport networks is a key part of our strategy for growth, and rail electrification is playing an important role in those efforts to improve our transport system and to boost our economy.

This is a timely opportunity to consider and debate electrification of the midland main line. Electrification can support our carbon reduction goals, as well as contribute to economic growth and the benefits outlined by my hon. Friend. In the longer term, some electrification schemes can also help us to achieve our goal of cutting the cost of running the railways; it is essential that the cost come down, because that is the only way to see an end to above-inflation fare increases. A more financially sustainable railway will also help us to deliver the sort of improvements called for by my hon. Friend today, and by other hon. Members day in, day out, in this Parliament.

Where the business case is strong and funding is available, the Government support progressive electrification of the rail network. As my hon. Friend said, electric trains are cheaper to run and maintain than their diesel equivalents. They emit less carbon and are quieter and lighter, which saves wear and tear on the track. Our committed programme of electrification includes the great western line to Oxford, Newbury, Bristol and Cardiff, and a significant programme in the north-west, including Liverpool to Manchester and Blackpool to Manchester. In his autumn statement, the Chancellor added the route from Manchester to Leeds and York to our electrification proposals, subject to confirmation of the business case.

The action taken by the coalition on electrification is in marked contrast to the approach of the previous Government. Their 30-year strategy for the railways, published in 2007, paid almost no regard to electrification and set out no sensible plans for it. In their 13 years in power, they managed to electrify less than 10 route miles of track on our network.

The midland main line has received some important investment in recent years. New stations have been built at Corby and East Midlands Parkway. Major station improvements have been delivered at Loughborough, Derby and Sheffield, and St Pancras has been transformed with the arrival of High Speed 1. Further improvements are in the pipeline.

[Paul Blomfield]

Will the Minister acknowledge, contrary to her previous point, that they were actually achieved under a Labour Government?

[Mrs Villiers]

I was not saying that the previous Government did not do anything; I am saying that they did almost nothing in relation to electrification.

By 2014, £69 million will have been invested by Network Rail to cut journey times for passengers between London and Sheffield by eight minutes. In the longer term, the second phase of High Speed 2 will slash journey time to the east midlands and Yorkshire. As I have said on a number of occasions, both in the House and outside it, the Government recognise that the business case for the electrification of the midland main line is strong—a point emphasised by my hon. Friend the Member for Kettering and a number of hon. Members. Useful supporting evidence has been provided by the report commissioned by East Midlands Councils and the South Yorkshire passenger transport executive, “The Case for Upgrading and Electrifying the Midland Main Line”.

The report highlights the significant potential economic, environmental and financial benefits that would come with electrification and other improvements, a number of which were outlined by my hon. Friend. He is right to focus on significant passenger growth on the line in recent years. It is important to take on board the points he made about projected population growth, the wider economic benefits that could be generated by improvements to the midland main line, and the potential for running- cost reductions—always an important concern—of electrification. I also note the points he made very strongly about the scope of electrification to provide capacity expansion. It is important for the Government to consider all those matters when making a decision on which schemes can receive funding.

The Government recognise that electrification of the midland main line could help to spread the benefits of high-speed rail, because it would enable through-running of services between the new high-speed network and the midland main line. That is something we will consider as we prepare our response to HS2 Ltd’s advice on phase 2 of the project to complete the Y network to Manchester and Leeds.

My hon. Friend the Member for Loughborough rightly highlighted the importance of considering the impact on freight of improvements to the midland main line, and we will do so carefully. We will also consider carefully the proposals for the range of improvements stakeholders are calling for in relation to the midland main line. I acknowledge that there is an aspiration to go beyond electrification and combine it with addressing some of the pinch points referred to by my hon. Friend the Member for Kettering. I note his analysis of the potential that a sixth train per hour might be able to deliver in terms of reconfiguring services and benefiting his constituents.

The hon. Member for Sheffield Central (Paul Blomfield) compared the prospects for the midland main line with the resources spent on the west coast main line. Yes, it is important to consider the relative levels of support for different parts of the country. Network Rail learnt many lessons from the west coast main line. Obviously, that project cost far in excess of what was originally envisaged. We hope that whatever schemes go ahead in future, whether midland main line improvements or others, Network Rail is able to avoid some of the mistakes made in relation to the west coast.

Electrification of the midland main line and a number of other upgrades are included in Network Rail’s initial industry plan, which sets out the rail industry’s view of options for inclusion in the next HLOS—high-level output specification—statement, for delivery in the period between 2014 and 2019. That plan is playing an important role in our deliberations on which projects can be funded in that five-year control period.

Although the case for electrification looks good, it is a major undertaking with a significant price tag. Just electrifying the line is expected to cost more than £530 million. The further upgrades that many campaigners are asking for could add more than £100 million to that figure. The Government already have commitments to improve the rail network in the period up to 2019, amounting to some £5 billion.

[Mr Hollobone]

I have listened carefully to the Minister. Is she impressed that the annual £60 million saving in running costs means that the electrification would effectively pay back within 10 years, which is almost unheard of for an infrastructure project of that sort?

[Mrs Villiers]

It is rare for an infrastructure project to pay for itself. Yes, that point will be important for us to consider when we take our decisions. My hon. Friend has made that point clearly and we are aware of it. However, even with the importance placed on transport by the coalition and with the positive business case for improving the midland main line, we will still need to make choices between competing priorities, because, of course, colleagues from throughout the country have priorities in their own areas.

We need to strike a balance between the aspirations of many communities for improved rail services and the need to ensure that the Government’s finances are not overstretched in these difficult times. The scale of what can be delivered to improve the midland main line depends on what is affordable and on a careful, fair assessment of competing priorities elsewhere on the rail network. The points that my hon. Friend made about the running-cost savings that could be delivered by electrification will be at the forefront of our minds when we take our decisions. However, we have not taken those decisions yet. I assure my hon. Friend that we are aware of the strength of the business case and of the support for going ahead with electrification.

Not all the projects that will take place in control period 5 will be expressly mentioned in the HLOS statement that we will publish. Some of the bigger ticket items may be expressly listed, but for projects that are not on such a big scale we are more likely to specify an outcome to be achieved on a route or into a certain city, such as increased capacity or faster journey times, and then it will be left to the industry, overseen by the regulator, to decide how best to deliver those improvements for passengers. Some improvements that campaigners have asked for over and above electrification would be more likely to fall into that category. If they were to go forward in CP5, they would therefore be subject to the industry HLOS process—an assessment by the rail industry and the Office of the Rail Regulator on how best to deliver them. I thought it might be useful to give that procedural clarification of what hon. Members can expect in terms of the type of scheme that would be headlined in the statement and those that might still be delivered during the CP5 period, but would be subject to further work by the rail industry.

[Nicky Morgan]

Briefly, since the Minister is dealing with procedural aspects, will she give us an update on timing? I have been told that we should expect some announcement in July. Is that still the timetable?

[Mrs Villiers]

Yes, the announcement will be made some time before the end of July, but we have not set a date.

The case for electrifying the midland main line continues to be made impressively by my hon. Friend the Member for Kettering and many others. Debates such as this provide important, timely input to the process of deciding which rail improvements can be funded in the five-year period up to 2019. I will ensure that all the points made today are carefully considered when the decisions on the HLOS statement are made.

Rail Infrastructure (Merseyside)

Theresa Villiers Excerpts

Tuesday 12th June 2012 Westminster Hall

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I am pleased to be able to respond to this important debate and congratulate the hon. Member for Wirral South (Alison McGovern) on securing it. I concur with her that Liverpool’s real place in railway history is as the home of the first passenger railway. On the railway’s opening day, an MP got run over, which was a little unfortunate, but I will try to avoid such an incident in the future. Today, the city of Liverpool has one of the most intensive and busiest suburban networks outside London. A number of rail improvements have been delivered or are due to be delivered in the coming years and I will discuss them in a moment, but first I will address some the hon. Lady’s general points.

The coalition fully agrees that investment in our transport network is crucial. It can help to generate growth and improve competitiveness, which is why, despite the difficult public finances relating to the deficit, we have prioritised investment in our road and rail network. Our programme of rail improvements is bigger than any since the Victorian era. I agree that providing opportunities for employment, as well as widening labour pools and access to jobs and employment, is one of the key benefits of rail improvement schemes.

The hon. Lady was kind enough to refer to the previous Conservative Government’s activities in electrifying lines in the 1980s. The coalition Government also recognise the benefits of electrification, which is why we have a programme to roll it out in the north-west and on the Great Western line. We will also consider what more can be done. The hon. Lady asked about rolling stock cascade. Network Rail is programmed to deliver the electrification in the north-west and on the Great Western line that will start to deliver that cascade. The work is going well and is on schedule. We are also making progress on the Thameslink procurement, which is a key trigger for making available rolling stock to be cascaded elsewhere in the country, potentially to Merseyside.

The hon. Lady mentioned the aspiration to electrify the Wrexham to Bidston line. I am, of course, aware of the scheme and have discussed it with Merseytravel. I acknowledge its potential in relation to the economies of Wirral and Deeside, and she is right to mention the potential benefits of better links between north Wales and Merseyside. She will probably be aware that, a few years ago, Merseytravel and the Welsh Government asked Network Rail to undertake a study outlining the costs of the electrification proposal, and the figure produced was £207 million, so it is quite a high-cost scheme, which makes delivery a challenge. There was little follow-up on the study, and it must be recognised that, although we support electrification, if schemes are to go ahead they need to demonstrate value for money and be affordable.

[Alison McGovern]

Does the Minister agree that although railways are not cheap, compared with the billions that have been provided for Thameslink, which will have a great impact on London, the proposed investment is modest; that what matters is the resulting cost-benefit ratio; and that we need to clarify exactly what those benefits will be?

[Mrs Villiers]

I agree that we need to assess carefully the value for money of every scheme, but we also need to look at overall affordability. I am afraid that even when one is talking about Government spending, £200 million is a significant amount. I am impressed with the work that Network Rail is doing, for example, on how to get the costs of delivering electrification down. I hope that there is scope to see whether there might be a more affordable scheme in the future.

For a local line, we, like the previous Government, would normally look to the local authorities to seek out the funding to realise such a scheme. We know that such schemes are important to the local authorities and, if they attach a priority to them, we would expect them to consider their options for funding. That might include the major local scheme, which will reopen in 2015. That has funded some very important improvements, for example, at Kirkstall Forge and in Coventry. There are options open to Merseytravel and the Welsh Government. As we have done in the past, the Government are prepared to engage with them if they want to do further work.

We take broadly the same position on some of the other improvements mentioned in today’s debate. On proposals to upgrade the Halton curve, we recognise the potential local benefits and we would be happy to work with the local authorities on their aspirations. However, again, the local authorities need to identify the funding.

[Steve Rotheram]

I am sure that the right hon. Lady, like all Ministers, is used to special pleading and everyone thinking that their project is the most important, but is she aware of the huge increase in visitor numbers to Liverpool and the importance of the extra connectivity my hon. Friend the Member for Wirral South (Alison McGovern) talked about to the future of the city and to growing the local economy? That is what the Government keep telling us that they want to see in relation to rebalancing the economy.

[Mrs Villiers]

We fully agree that improving our rail network can help us to achieve our aspiration to rebalance the economy and close the prosperity gap between north and south. That is why we are investing in a major programme of rail improvements, a number of which will benefit Liverpool—I am about to come on to those—including the announcements we have already made about the northern hub.

It is very important that we consider how to get the maximum benefits from rail investment to help to provide the jobs and prosperity that I think everyone in this Chamber wants. I acknowledge that rail has been key to Liverpool’s success as a port. In recent years, there have been a number of measures to improve rail freight connectivity. Under the previous Government, the Olive Mount chord was reopened to facilitate better freight train access to the port. The upgrade of the west coast main line has cut journey times between London and Liverpool, and a total of 106 new Pendolino carriages will be in use on the line by December, amounting to a 20% uplift in capacity, which obviously benefits many people in Merseyside travelling between Liverpool and London.

A competition for the next west coast franchise is under way. We are emphasising the importance of raising passenger satisfaction and service quality and improving punctuality. However, I fully agree that it is not only north-south connections we need to focus on. It is vital that we improve connectivity between our great cities of the north of England, because that is another way we will achieve the goals, rightly set out by the hon. Member for Wirral South, of rebalancing the economy and boosting the economy of the north of England.

In our spending review, we confirmed the control period 4 programme of rail improvements, including line speed improvements between Liverpool, Manchester and Leeds. Electrification in the north-west, which was another programme we inherited from the previous Government, was also given the go-ahead. That includes electrification of the line to Wigan via St Helens, which will benefit commuter services in Merseyside. The Ordsall chord recently got the go-ahead, which is a key part of the northern hub scheme.

[Rosie Cooper]

Will the Minister give way?

[Mrs Villiers]

I am sorry, but I need to conclude now.

Although located in Manchester, that scheme will benefit Liverpool because it will deliver those faster journey times between Liverpool and Manchester that the hon. Member for Wirral South rightly identified as very important. The combination of that with the electrification of the north trans-Pennine line to York means that we will see improvements to journey times between Liverpool and Leeds. When those very important improvements are complete, journey times will decrease from around 109 minutes to 77 minutes.

In the meantime, TransPennine Express is consulting on a new timetable that could result in an additional service between Liverpool and Newcastle. We welcome that because it could increase capacity on the route and deliver some journey time savings early, in advance of those infrastructure upgrades that are also going ahead. As I have many times before, I assure hon. Members that we are considering all the remaining schemes in the northern hub, including increasing the capacity of the Chat Moss route. That is very relevant to Merseyside. We will assess what is affordable and what can be included in the high-level output specification that we will publish over the summer.

I will end by referring to some of the real successes we have seen on the Merseyrail Electrics network, which was devolved to Merseytravel and supported by a grant of around £70 million a year from the Government. Passenger satisfaction ratings have risen significantly to 93% in autumn 2011 and high levels of reliability have been achieved. All the trains have been refurbished and automatic ticket barriers have been introduced in many stations. All of Liverpool’s five underground stations are to receive a £40 million overhaul in the next few years, and £20 million is being spent on refurbishing Liverpool Central station, which forms a key hub of the Merseyrail network. Merseytravel is putting together plans to replace every train on the Merseyrail network. That is an ambitious programme and my Department is happy to provide advice on developing the case for replacement rolling stock.

That programme provides an illustration of what the devolution of transport decision making can achieve. We have consulted on our proposals to devolve the local major scheme to local transport bodies. Local authorities might like to consider the scheme I mentioned in relation to their aspirations to improve local rail services. We are also discussing a city deal with the Liverpool city region, which has identified improving connectivity as essential to its future economic growth.

Last but certainly not least, our HS2 plans will see classic compatible high-speed trains running off the new network on to the west coast line to serve Liverpool directly. That will provide improved connectivity to London and faster journey times and will further assist in achieving the goals, which I am sure the hon. Member for Wirral South and I share, of regenerating the economy around Merseyside, promoting growth in the north of England and rebalancing our economy. A high-quality rail network is one of the means we can use to achieve those objectives.

Question put and agreed to.

Civil Aviation Bill

Theresa Villiers Excerpts

Tuesday 22nd May 2012 Commons Chamber

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I beg to move, That the Bill be now read the Third time.

Throughout the consideration of the Bill, the debate has been informed and constructive. I thank all Members who have taken part, including Opposition Front Benchers such as the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), the shadow aviation Minister. We have also been assisted by the excellent report prepared by the Select Committee on Transport. I reiterate the thanks that I have given to the Committee and its Chair for their work on pre-legislative scrutiny.

The Bill has enjoyed considerable cross-party support at every stage in its passage through the House, and its key elements have been broadly welcomed by airports, airlines and a number of other stakeholders. That reflects the efforts made not just by this Government but by our predecessors in office to listen to the industry’s concerns and respond effectively to them to put together a balanced reform package.

In the year of the London Olympics and the diamond jubilee, we are reminded once again of the crucial role that the aviation industry plays in bringing millions of tourists to this country. That is just one element of its wider contribution to the UK economy. The Bill will modernise the framework for the economic regulation of airports, greatly improve transparency and accountability and put the passenger interest right at the heart of the new regulatory system. There is widespread agreement that the current one-size-fits-all regulatory regime is inflexible and outdated. The system proposed in the Bill will deliver more effective protection for passengers and a lower regulatory cost for industry.

At the heart of our proposals is a new primary duty to further the interests of passengers and freight owners. The Bill will also enable the Civil Aviation Authority to tailor measures to each individual airport, allowing it more flexibility to target intervention in the most proportionate way.

With a strong emphasis on the price control process, the current rules leave the CAA with very limited options if problems occur between five-yearly reviews. The new licence system in the Bill will allow for real-time regulation, empowering the CAA to act swiftly if an airport is failing its customers on, for example, service quality, winter resilience, volcanic ash or any challenges that it is not yet possible to foresee.

Clause 1(3) and (4) require the CAA to carry out its economic regulation functions in a transparent, accountable, proportionate and consistent way. To respond to points made in earlier debates, we are strengthening the scrutiny to which the CAA is subject by giving a new accounting direction to the regulator, requiring it to include an efficiency statement in its annual report, which will be subject to validation by its external auditors.

The primary duty to passengers, which is so pivotal to the Bill, will provide greater certainty and clarity for airport operators, which in turn will encourage long-term investment in the improved facilities that passengers want. A shift to more independent economic regulation also removes risks associated with political interference, which is why it is a common feature of modern regulatory regimes.

The Bill will also make the CAA’s decisions more accountable than they have ever been by introducing a new appeals process. The Government worked hard with both airlines and airports to come up with an appeals system that gives effective redress to airlines without turning the new regulatory regime into a two-tier system, which would have dragged the Competition Commission or the Competition Appeal Tribunal into everyday CAA decision making. The result of that work is that the Bill provides appeal rights to both airlines and airport operators that are significantly more effective than existing remedies. However, not just businesses benefit from greater transparency and clarity. The Government believe that providing the right information for consumers can sometimes achieve better results than traditional regulatory intervention, so the Bill will give the CAA new functions on collecting and publishing information on issues such as service quality to help consumers to make informed decisions on competing operators in the aviation sector.

The Bill contains important security provisions—keeping people safe and secure when they travel is paramount. The Secretary of State is responsible for aviation security policy and for giving security directions. That will not change under the new approach we are advocating, but the Government believe that giving the experts in aviation operations a greater say in how security is delivered will improve our ability to guard against the very real threats we face.

The CAA has valuable experience not just of regulation generally, but of safety management systems that ensure that risks are controlled as effectively and efficiently as possible. We believe that that track record on safety will assist the CAA in overseeing the delivery of the new security management systems, which are an important element of the move to an outcome-focused, risk-based approach to security, which has been debated extensively during the Bill’s passage through Parliament.

I am also convinced that vesting those regulatory functions for security in the CAA will benefit the aviation industry, because it will henceforth be able to deal with a single regulatory body rather than the current two bodies. Moreover, we expect that the complementary measure—the introduction of an outcomes-focused, risk-based approach to security—will enable security checks to be integrated more closely into the general business of the airport. That should open the way to more cost-effective and more passenger-friendly ways of delivering security outcomes.

Plans for the proposed move of responsibilities in relation to security regulation to the CAA are already being developed. The Department for Transport is in discussions with the Department’s staff who are likely to be affected and with their trade union representatives, because we are keen that as many employees as possible stay in post when their jobs transfer to the CAA, taking their skills and valuable experience with them.

[Julie Hilling (Bolton West) (Lab)]

The Minister said that the Department has had conversations with the staff and their representatives. Can she give us any more information about that, because—as she will be well aware—one of the concerns we raised during the passage of the Bill was about the loss of expertise if staff did not follow their jobs to the CAA?

[Mrs Villiers]

We are in discussions with both the CAA about the practicalities of the move and with those Department for Transport staff whose posts we expect to move. At the moment, we are not able to give them all the answers on all the issues, partly because the Bill has not passed as yet, but also because issues such as pensions are under review both in the civil service and in the context of the CAA. But we are very conscious of the need to try to provide as much visibility and information as possible, and we are working to do that, although it will take time to work through certain issues.

On environmental matters, the Opposition tabled an amendment on Report—it was extensively debated—that would have imposed a supplementary environmental duty in relation to the CAA’s airport economic regulation functions. I understand the motivation for such an amendment, as I said on Report and in Committee, but I believe that its aim is already provided for in the Bill, which already allows the CAA to approve reasonable investment in measures that mitigate environmental impact. No doubt the discussion on whether further clarification on that point is needed on the face of the Bill will continue in the other place in the same constructive and thoughtful way that it has in this House.

I must emphasise, however, that the Bill already includes important new information provisions to help us address the environmental impact of aviation. The Bill gives the CAA powers to collect and publish information about the environmental effects of civil aviation. Not only could that be used to give more information to communities affected by aircraft noise—hon. Members know how significant an issue that is for many people—but it will ensure that passengers have better information about the environmental impact of their travel choices than is currently available. We believe that improving transparency will help us to harness consumer power in pushing for progress towards cleaner and quieter planes.

Some have called for more on the environment to be included in the Bill, but to be effective, environmental measures need to be applied proportionately across the whole sector and not just focused on those airports that happen to be subject to economic regulation. So separately from our efforts contained in the Bill to reform economic regulation, a number of initiatives are under way to deliver cross-sectoral action on the environmental impact of aviation. Adding aviation to the European emissions trading system is expected to deliver carbon savings across Europe of some 480 million tonnes in the period to 2020. Both NATS and the CAA have a strong focus on reducing fuel burn and addressing noise in their work on improving airspace management, and the Government will soon publish a consultation on a sustainable framework for aviation. We are clear that aviation should be able to grow, but it must also play its part in delivering our environmental goals and protecting the quality of life of local communities affected by aircraft noise and other local impacts.

[Julie Hilling]

The Minister said that the consultation document will be published “soon”. During the passage of the Bill, we have talked about future legislation that would enable environmental concerns to be addressed, so can she tell me what “soon” means in this context?

--- Later in debate ---

[Mrs Villiers]

We will publish the consultation in the summer alongside a call for evidence on maintaining the UK’s hub capacity.

Last, but definitely not least, the Bill will grant the Government the power to extend ATOL protection to flight-inclusive holidays sold by airlines and those sold on an agent for the consumer basis. Extending the ATOL scheme has received strong support in the House and has the long-term support of the Transport Committee. If the Bill is adopted, we would expect to consult next year on whether the new powers should be exercised.

In conclusion, by establishing a single, clear, primary duty to passengers as the overriding principle of economic regulation, the Bill will incentivise investment in our airports by providing greater clarity and certainty for airport operators and investors; put passengers’ interests at the forefront of the regulatory regime; give the CAA far more effective powers to intervene swiftly if an airport fails its customers; and open the way for a further extension of the ATOL scheme, which for nearly 40 years has provided financial protection and peace of mind for millions of holidaymakers. I urge the House to support the Bill.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I begin by thanking all my colleagues who sat on the Bill Committee for their support, assistance and advice, as well as those who helped on Report, outside stakeholders who sent submissions and/or gave evidence and the Transport Committee for its scrutiny of the Bill.

We welcome and support the Bill. On Second Reading, my hon. Friend the Member for Garston and Halewood (Maria Eagle) said that we would support the Bill. That was no surprise. Much of it was drafted when we were in government, so there was a legacy. However, the timing of its arrival was a bit of a surprise, so the Transport Committee scrutiny was a little dislocated. Indeed, the Government’s response to the Select Committee was published only last Friday. It is good that it is out, but it demonstrates that there were surprises in the timing.

Not only was the arrival and timing a surprise but the inclusion of the security clauses, which were not in the original Bill, was not expected. Also, importantly from our point of view, the environmental protection measures, which were in the original draft Bill and mentioned in the Department for Transport press releases announcing the publication of the Bill, surprisingly did not appear in the Bill. That was a disappointment to the Opposition, and I shall return to it.

I do not want to appear too critical, however, although it might come across that way in due course, because, as I said, we support the Bill. In Committee, the Minister was as courteous as usual, although she and the Government did not accept a single amendment—she did so quite politely—even when she was injured and might have been a bit more vulnerable. The fact that Ministers did not accept any amendments was a matter of considerable disappointment to us, particularly given that we had the support of many stakeholders and recommendations from the Transport Committee.

The Minister has well covered two of the obviously key elements of the Bill—putting the passenger at the core of the CAA and updating the industry’s economic regulation. However, a number of other issues were raised in Committee, highlighting the strengths and weaknesses of the Bill, and I wish briefly to refer to some of them. We had a good discussion on security and the outcomes-focused, risk-based system. We support those arrangements, but, as my hon. Friend the Member for Bolton West (Julie Hilling) said, we were concerned about the arrangements for staff transfers and the certainty of their entitlements on wages, conditions, pensions and redundancy agreements. The staff side raised concerns that members of staff might be worried and often not accept or apply for transfers. The potential haemorrhaging of staff in such a sensitive area was of concern to the whole Committee, so it was good to hear the Minister provide additional reassurances before and after my hon. Friend’s intervention.

The Minister mentioned the ATOL reforms, which we all support, despite the delays. We will do what we can to help the Secretary of State and the Minister of State introduce and enact the reforms, because that is what we all want. Recent pronouncements have perhaps pointed towards more complications arising, which is obviously frustrating not only to the Department and the Government, but to all concerned.

Let me turn to the opportunities that were missed. On the environment, we proposed a duty, as the Minister mentioned. We also suggested including environmental aspects in the licensing conditions for Heathrow, which we think would be reflected right across the industry. On the passenger experience, we proposed that the responsibility for producing welfare plans should be a matter for the licensing arrangements for Heathrow, given the experiences in recent years of passengers being stranded, with all the difficulties that we have seen, heard about and, in some instances, experienced. It is interesting that the indicative licence produced for the Civil Aviation Authority suggested that the licence that it will produce for Heathrow ought to contain passenger welfare elements. We think that the Government could have given a firmer steer by referring to that in the Bill, which would have helped. We also made various suggestions about the efficiency and scrutiny of the Civil Aviation Authority, although I will return to those presently.

There are two additional areas that the other place will want to take account of: one was mentioned in Committee, whereas the other was not. The first is the honesty and accuracy of ticket prices, particularly from the bucket airlines, and the hidden surcharges. The CAA could clearly play a role in addressing that, and I am sure that the issue will be raised in the other place. The other issue, raised most recently, is the suggestion that certain passengers should be able to fast-track themselves through security and immigration for a price, which has caused quite a bit of consternation among passengers generally. Given that the suggestion has been made since Report, I suspect that the other place will want to see how things could be obviated to ensure fairness for everybody going through our airports.

Let me look briefly at the three areas I have mentioned. On the environment, we had a bit of banter with the Government about their mantra, which we hear all too frequently, of wanting to be the greenest Government ever. We obviously had quite a bit of disagreement about whether the Bill reinforces that claim. Indeed, the Minister for shipping, who is in his place, and I had a discussion this afternoon about this being the greenest Government ever in terms of environmental protection. However, I do not think that Mr Deputy Speaker—[Interruption]—if he was paying attention—will let me go there. [Hon. Members: “Ooh!”] My apologies, Mr Deputy Speaker: I wanted to ensure that you did not allow me to stray, because, seeing the hon. Gentleman in his place, I could easily have gone down that cul-de-sac.

On reporting and giving information to passengers, clauses 83 and 84, which we covered extensively, are welcome. However, we thought that there ought to be a duty on the Civil Aviation Authority, as there is on every other economic regulator, to take account of the environment. Reading between the lines, I am not sure whether the Minister’s comment that she expects the matter to be raised in the other place was perhaps an indication of more openness from the Government or that they might be prepared to look at this again.

One element of licensing to do with the environment that was raised by a number of my hon. Friends concerns protection for neighbourhoods, planning permissions and the rest of it. We think that including that in the licence would give communities greater strength and the certainty that airports and the aviation industry would take account of the sensitivities mentioned by the Minister of State.

The last thing we suggested—which the Government did not think it was appropriate to pick up—was the requirement for ticketing to show the environmental impacts of different modes of travel, thereby helping passengers to make decisions based in part, perhaps, on the difference between the environmental impact of going by air and the impact of travelling by rail or coach. I will be surprised if that suggestion is not examined further in the other place.

On the passenger experience, the reporting, information gathering and publishing will, again, be welcomed. However, as I have said, we think that the welfare plans should have been included in the licence, and that represents a missed opportunity by the Government.

[Mrs Villiers]

I feel that I ought to reiterate the reassurance I gave in Committee and on Report. We, too, are very supportive of a focus on passenger welfare plans. We just do not believe that the content of the licence should be hard-coded in legislation. We believe that the best approach is to give the independent, expert regulator the responsibility to decide what licence conditions are appropriate.

[Jim Fitzpatrick]

I fully accept that; we have a disagreement over whether this ought to be in the licence. We think that putting this in the Bill would strengthen the requirement and give a much clearer indication to the regulator that the Government expected it to look at this as a key area, particularly given the experience in recent years. We are talking about a difference in emphasis, rather than a difference in principle, because we all want passengers to be better protected against the vagaries of the weather or other factors detrimentally affecting them.

Labour Members raised the whole question of the information on queuing times, and not just in baggage-handling areas. The key area where we disagreed was on whether immigration queues could or should be counted and measured, with information given to the public. Obviously, the Government’s position is that immigration and the immigration service, the UK Border Agency and the UK Border Force are the responsibility of the Home Office, and therefore it is not appropriate to deal with them in this Bill. However, given the further recent confusion over what the queuing time actually is, particularly at Heathrow, and given the disagreements on measuring between the airports and the immigration service, we think that the CAA could have played a very constructive role in that area, authoritatively collating the evidence and publishing it. As with a number of the other amendments that we failed with, I am sure that the Lords will wish to return to that.

On CAA efficiency and National Audit Office scrutiny, we again agree to differ, but at least the Minister did come up with a proposal to strengthen the scrutiny, which, in some way, addressed the concerns we were raising. Obviously, we will monitor how the proposal works in effect. We hope that it will give greater reassurance to the airlines and other customers that the CAA will operate as we would all wish.

In conclusion, this was a good Bill in draft and, in essence, it remains a good Bill, but there is still much room for it to be even better. We hope that the other place will be able to make the improvements that we were, sadly, unable to make.

Cost of Living

Theresa Villiers Excerpts

Wednesday 16th May 2012 Commons Chamber

[Maria Eagle]

My hon. Friend is correct, of course. The Government have said that those who are out of work should be willing to travel for up to 90 minutes to take up a reasonable job offer or lose their jobseeker’s allowance. The Secretary of State for Work and Pensions has said:

“The truth is there are jobs. They may not be absolutely in the town you are living in. They may be in a neighbouring town…We need to recognise the jobs often don’t come to you. Sometimes you need to go to the jobs.”

Not only is he out of touch about the extent to which there are actually jobs, but he seems to have no concept of the cost of travel under his Government. Those on the minimum wage will have take-home pay of just over £10,000 a year, but a season ticket for the 90-minute journey between Newark Northgate and King’s Cross would cost more than £8,000. Under the Government’s policy, therefore, they expect someone to spend up to 77% of their take-home pay just to get to work. Coming into London from Braintree would cost someone in a minimum wage job 46% of their take-home pay. There are other examples. The cost of transport is making it harder for people to take up jobs or to stay in education, as my hon. Friend the Member for Sedgefield made clear in the examples that he gave.

Of course we need to bring down the deficit, but we need the right balance between a plan for reducing spending and a plan for jobs and growth. That is why I have supported more than two thirds of the Government’s cuts to transport spending—difficult cuts, which we would have had to make in government as well, to the Highways Agency, Transport for London and major transport schemes. However, £6 billion is two thirds of the reductions in expenditure planned across this Parliament. We would not have cut support for rail and local transport services so far or so fast. We could then have relentlessly focused on keeping down the cost of transport, helping households through tough times and not adding needlessly to the pressures that they face. We would have held fare rises at 1% above inflation during this Parliament, and without the need to cut one penny from the investment in the network that the Government are rightly taking forward. We could also have protected local bus services and kept fares down.

Of course, Ministers are so out of touch that they claim that those fare rises and cuts to services are not actually happening. In his autumn statement, the Chancellor claimed that he had succeeded in keeping increases in rail fares at just 1% above inflation. He said:

“RPI plus 3% is too much. The Government will fund a reduction in the increase to RPI plus 1%...It will help the millions of people who use our trains.”—[Official Report, 29 November 2011; Vol. 536, c. 810.]

Why did fares rise in January by as much as 11% on some commuter routes? What the Chancellor perhaps forgot to mention was that the Transport Secretary—not this one, but her predecessor—had given back to the train companies the right to add up to a further 5% increase on top of that cap. [Interruption.] That was banned when we were in government once times were getting tough. By not cutting the rail budget so far and so fast, we would set the minimum—[Interruption.] If the Minister of State, Department for Transport, the right hon. Member for Chipping Barnet (Mrs Villiers) wants to intervene, perhaps she would like to do so properly instead of chuntering from a sedentary position. By not cutting the rail budget so far and so fast, we would not only set the maximum fare rise at 1%—

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

The point I was making is that if the hon. Lady has such a problem with fares basket flexibility, why are her Labour colleagues in Cardiff still applying it in Wales?

[Ms Eagle]

There is devolution in Wales, where they make the choices on the basis of the budgets assigned to them by this Government. We have been very clear that we abandoned flex and stopped it, and Lord Adonis made it clear that, because times were so tough, we were not going back to it. The current Government have reintroduced it, while pretending that they are cutting fares, which they are not. It is simply not true, as Ministers claim, that this is just an additional cost to the taxpayer. As the National Audit Office has said,

“there is a risk that the benefit of the resulting increase in passenger revenues will not be passed on to taxpayers fully, but will also result in increased Train Operating Company profits.”

This is a Government who are not just out of touch with the impact of these fare rises, but unwilling to stand up to the train companies and enforce even the cap they claim to have set. This is indeed a Government who are in hock to the TOCs.

The pressure on commuters is set to spiral over the next two years because Ministers have decided that next year’s fare rises are to be even higher—up to nearly 12% on the current rate of the retail prices index. That is nearly 12% in both 2013 and 2014, and the tender documents for the new franchises reveal even more pain on the way. Bidders are promised even more freedoms on fares, including the right to introduce a new super-peak fare at even higher prices, hitting hard-pressed commuters still further. Franchise bidders are promised that they can cut daily services by up to 10%. They are no longer required to improve performance over the life of the franchise and no longer required to maintain the same level of CCTV on trains.

As we exposed last month, a programme of ticket office closures has already been signed off by Ministers, but staffed ticket offices are not a waste or an inefficiency that can be cut out with no resulting impact on service. The impact will be passengers cheated out of the cheapest fares, which are not always clearly advertised or available at ticket machines. Those without access to the internet, often those seeking work or older people, are unable to get the better deals and are left to pay over the odds for their train tickets.

Ministers continue to deny that they have signed off these closures. At the last Transport questions, the Minister of State assured the House that “they are not happening”. That is what she said, yet we have seen the e-mail from the Department’s own rail fares and ticketing review, warning the Department’s press office not to deny that ticket office closures have been given the green light because

“the Minister has already decided to approve some ticket office closures…it’s just not been announced yet.”

I have a further leaked document with me. This is from London Midland, the company set to be the first to implement a closure programme—for the first of the 675 ticket offices across the country that we know have been earmarked for closure. This leaked document reveals that London Midland will save £1.25 million a year by closing 86 ticket offices—profits before passengers. It also refers to a payment of £200,000 from the Department for Transport. Perhaps the Secretary of State—or the Minister of State—can confirm when she closes the debate whether the Department for Transport is actually paying companies to push through these closures? A reference in this document suggests that that might be the case. The Minister of State can tell me now if she would like to intervene. She does not want to, so perhaps the Secretary of State will address the issue at the end of the debate. The future of rail under this Government will be higher fares, more overcrowding, less CCTV and fewer ticket offices.

If Ministers are out of the loop when it comes to what is happening to rail fares and ticket office closures, they are even more delusional when it comes to bus services. Last month the Under-Secretary of State for Transport, the hon. Member for Lewes, told the House that what had been said about bus cuts was “entirely untrue”, and claimed that

“there have not been the cuts that the Opposition are so keen to talk up.”—[Official Report, 19 April 2012; Vol. 543, c. 485.]

It is not the Opposition who are talking up bus cuts, but the major operators. Arriva told my hon. Friend the Member for Nottingham South (Lilian Greenwood) that

“with the 20% reduction in BSOG, the ongoing cuts to the concessionary fare scheme, and a reduction in tenders across the UK, this has put enormous pressure not only on Arriva, but the bus industry as a whole.”

These are real cuts. Evening and Sunday services have been withdrawn on Route 32 in Wycombe. The Saturday service has been withdrawn on Service 84 in Maidstone. Route 1 in Watford, Route X9 in Milton Keynes and Service 50 in Guildford have all been cut. In fact, one in five of all supported services have been lost, and fares are spiralling. The Under-Secretary of State should stop coming to the House and claiming, as he did during last week’s Transport questions, that there have not been any bus cuts, because there have.

The Government need to understand that not just buses but lifelines are being cut: lifelines connecting young people with colleges, parents with child care, and older people with shops and services. The loss of a bus service can have a devastating impact on those without cars, and on those in rural areas in particular. It can have a devastating impact on their lives, their chances, and their capacity to get out and about.

Like the train fare rises, the bus cuts are a direct consequence of the Government’s decision to cut the councils’ funds for local transport by 28%, and their decision to remove any requirement for what is left of that money actually to be spent on transport. At the same time, the Government have cut the subsidies given directly to bus companies by a fifth. The result is that not only are there additional pressures on family budgets, but young people are simply unable to reach their full potential.

Ministers need not take my word for that. They can listen to the Association of Colleges, which has warned of a drop in further education enrolment. They can listen to the 60% of colleges that report a drop in transport spending by their local authorities. They can listen to the Joseph Rowntree Foundation, which has revealed that 40% of young people say that their decisions on post-16 education were influenced by transport, not by courses. When students travel, on average, between nine and 35 miles to get to college, and when 72% of them rely on the bus to get them there, it is no wonder that the loss of bus services will hit them and their life chances hard.

The hon. Member for Lewes told the House that he had held discussions with bus companies about the costs of travel for young people. No doubt they delivered the same message to him as they have delivered to me when I have raised our own proposals for a concessionary fares scheme for 16 to 19-year-olds in education or training. I believe that the bus companies want to be helpful, but Brian Souter of Stagecoach told me—

Heathrow Airport (Operational Freedoms)

Theresa Villiers Excerpts

Tuesday 15th May 2012 Written Statements

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

My statement of 14 July 2011, Official Report, column 55WS, announced a phased trial of operational freedoms at Heathrow airport to gather evidence in relation to the greater use of tactical measures, in defined and limited circumstances, to prevent or mitigate disruption and to facilitate recovery. The trial is run by BAA, the airport operator, with oversight provided by the Civil Aviation Authority (CAA), the independent aviation regulator.

These measures are consistent with the Government’s commitment to runway alternation at Heathrow. I would also emphasise that the trial will not increase the number of flights at Heathrow which remains capped at current levels.

Phase one of the trial ran from 1 November 2011 until 29 February 2012. An interim report on the first two months of phase one was published by the CAA on 21 February 2012 . The CAA has today published its final report on phase one, alongside a report by BAA, assessing the impact on operations at the airport and on communities around Heathrow: www.caa.co.uk/apfg

The CAA’s report is encouraging about the benefits of the measures trialled so far, but suggests that more detailed data and analysis is required from phase two to draw definite conclusions on these and the impacts on local communities.

The CAA report concluded BAA ran phase one of the trial within the parameters agreed with Government and generally collected and published data for analysing the trial in an appropriate and transparent manner. The CAA noted that the broad spectrum of interested parties, and the technical nature of the measures trialled, made successful engagement with local communities challenging; and they made suggestions for improvement.

The report also accepted BAA’s analysis that phase one of the trial recorded:

dual arrivals were deployed for 3.2% of westerly arrivals at the airport (1,802 out of 56,260 arrivals); an average increase of 13 de-alternated flights each day on westerly arrivals, from 21 to 34 per day;

dual departures were deployed for 0.07% of westerly departures at the airport (38 out of 55,860 departures);

operational improvements in relation to arrival punctuality and delay, stacking (under specific circumstances) and taxi times following arrival;

A large increase in complaints, although it was not clear whether these were generated by the use of operational freedoms, as a proportion appear to correlate to a prolonged period of easterly operations which was due to weather conditions rather than the trial;

generally low awareness of the trial but some support for it from residents surveyed when its objectives were explained; and

no detriment to safety.

In my previous statement, I also set out the timetable for phase two of the trial. Following advice from the CAA, I am announcing today that I have agreed to a six month extension of phase two which will now run from July 2012 to March 2013.

The CAA concluded that the relatively short duration of phase one meant that the evidence it provided on the impact of operational freedoms was more limited than anticipated, partially as a result of an unusually high level of easterly operations. The extension until March 2013 will increase the amount of data generated enabling a more robust analysis of the benefits and impacts, allowing a direct comparison between phases one and two. A longer trial will also reduce the risk that external factors (such as easterly winds) significantly limit the amount of usable information. This will ensure that the eventual consultation with local communities on whether a more permanent operational freedoms regime is adopted at the airport is based on a sufficient level of evidence.

Phase two will also mean that Heathrow will benefit from greater resilience during the Olympic and Paralympic games period when the airport will be under more pressure than usual.

Improving punctuality, tackling delay and strengthening resilience at Heathrow would improve the quality of the UK’s international connections and enhance the reputation of our largest international gateway. Phase one has shown that, without prejudging our views on the associated impacts, there is potential to deliver operational benefits without increasing capacity. We therefore have grounds to believe that there is still more that can be done to deliver a better Heathrow, while continuing to protect communities affected by aircraft noise.

I have therefore agreed to the continuation of the trial of tactical use of dual arrivals and departures measures agreed for the first phase. I have also agreed that the following freedoms should be added to phase two:

Aircraft scheduled to arrive after 0600 will be permitted to land between 0530 and 0600 provided that the same number of flights scheduled to arrive between 0430 and 0500 are rescheduled to after 0500. This is expected to delay the onset of noise disturbance to local communities in the early morning period and enhance the resilience of the schedule;

During “segregated” operations departing aircraft may be re-directed (radar vectored) by air traffic control from their normal routes of departure (mostly within predetermined noise preferential routes). This is expected to improve the reliability of the schedule by increasing the departure rate from a single runway and improve the scope for reducing the number of unscheduled night flights;

Subject to approval of the safety case by CAA, it is intended to apply the same principles to enable dual departures later in phase two, but only within the predetermined noise preferential routes;

The cap on the more flexible use of dual arrivals allowed as part of the trial will be raised from 6 to 12 per hour;

The proactive tests used briefly in phase one will be continued. The periods during which these tests will be undertaken will be announced on BAA’s website during the first month of phase two.

BAA will shortly begin a further period of engagement with local authorities, communities and other stakeholders around the operation of phase two, particularly on the monitoring of noise impacts. Once the trial is complete, the evidence collected will provide the basis for a consultation with local communities. This will consider whether an operational freedoms regime of some form should be adopted on a more permanent basis at Heathrow and if so what safeguards should apply in relation to its use. This consultation will inform the subsequent decision by Ministers.